The Indian government has approved sale of its stake in five Central Public Sector Enterprises (CPSEs), including Shipping Corporation of India (SCI), officials announced Thursday. The privatization plan for SCI foresees disinvestment of government’s shareholding of 63.75% in SCI.
CPSEs are the companies in which over 50% of the stake is owned by the government.
“The Cabinet Committee on Economic Affairs, chaired by Indian Prime Minister Narendra Modi has accorded in-principle approval for strategic disinvestment in Bharat Petroleum Corporation Limited (BPCL), Shipping Corporation of India (SCI), Container Corporation of India (CONCOR), North Eastern Electric Power Corporation Limited (NEEPCO) and Tehri Hydro Development Corporation India Limited (THDCIL),” a government spokesman said.
The decision was taken during a meeting of the Committee on Wednesday evening, local media reported.
As informed, the strategic disinvestment seeks to boost finance to the social sector and “developmental programs of the government benefiting the public,” the spokesman explained.
Mumbai-based SCI was established in October 1961 by the merger of Eastern Shipping Corporation and Western Shipping Corporation. Two more shipping companies, Jayanti Shipping Company and Mogul Lines Limited, were merged with SCI in 1973 and 1986 respectively.
The Public Sector Enterprise operates and manages vessels that services both national and international lines, including cruise and passenger vessels, bulk carriers, tankers and offshore services.
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